Advantages and Disadvantages of Mixed Economy

Advantages
Mixed economy has got the following advantages:
Rapid economic development Inmixed economy both private and public sectors work side by side. The combined efforts lead to rapid economic development. The economic resources of the economy are used efficiently. Wastages of resources are minimised. Lesser inequality of income:

Right to own property is granted. Law of inheritance is also applied, so certain members of society grow richer and richer. Public sector in the economy tries to provide economic facility to the general masses. It reduces inequality of income. Balanced regional growth:

The planning commission of the country makes policies for the development!"of every region of the economy. The government tries to develop all regions and every section of population. Freedom to own private property:

Individuals are free to acquire property and retain in their own names, so the initiative to work more and earn more is there. It helps in the rapid development of the economy in the field of agriculture, industry and other services. Planned development:

The planing commission is empowered to make effective plans for the development of the economy. We, in India, have also adopted planned developmental economy and introduced five year plans. Public interest:

The public sector looks into the interest of the general public. The government under this economy is said to be welfare state. It introduces social insurance schemes, incurs expenditure and manages economy in the interest of general masses of the country. Disadvantages

Inspite of the above advantages, the mixed economy suffers from the fol lowing weaknesses: Fear of nationalisation: Private and public sector coexists. The government has the power to nationalise and own any industry, so private sector remains under a psychological fear that their industry may be nationalised or taken over in the public interest. Inequality of income:

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...﻿Introduction to mixedeconomy.
What Is MixedEconomy?
According to Amadoe (2015), mixedeconomy can be defined as “An economic system that features characteristics of both capitalism and socialism. A mixed economic system allows a level of private economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims. This type of economic system is less efficient than capitalism, but more efficient than socialism.” In mixedeconomy private sector run most of the business and government intervene in certain areas by imposing regulations and spending on public sector.
In reference to Investopedia (2015), in mixedeconomy, public sector provides services like defence, power and other basic goods required and private sector is responsible for providing consumer goods, agriculture and other small scale industries. It also allows private sector to own property but government should ensure that profit and property are distributed equally.
According to Seth (2013), most of the major economies today are mixed because of globalization. To carry out international trade and serve to the needs of people it’s important for government to give some control to free market forces.
Mixedeconomy can be classified...

...Mixedeconomy
Features
1. Co-existence of public and private sectors:
Both public and private enterprises exist in this economic system. The role and areas of both the sectors arc well defined.
The relative roles assigned to the public and private sector differ from economy to economy. But generally the public sector is expected to perform certain basic functions such as:
(i) Development of economic infrastructures.
(ii) To promote basic industries that require huge investment and are of long gestation periods;
(iii) To promote industries in backward regions where inducement to invest is low.
(iv) To develop defence production industries in public sector.
Similarly, the private sector is expected to supplement the efforts of public sector and to take advantages of investment opportunities enhanced by public enterprises.
In the mixedeconomy the two sectors are not rivals. The two sectors are partners in the process of development, because for the efficient working of this system the co-operation between the two sectors is necessary.
The private sector in mixedeconomy operates under certain controls and regulations of the government.
2. Economic planning:
Generally a mixedeconomy is a planned economy. Public sector enterprises have to work according to a definite plan to achieve certain...

...MixedEconomies
Would you rather live in an economy where the government makes primary decisions
or one where consumers and producers make all the decisions? Why not have a mixedeconomy
with a little bit of each? A mixedeconomy that contains safety nets, laissez faire and government
intervention (when needed) will lead to a better society.
First of all, economic security plays a huge role in a mixedeconomy, by protecting its
people. If a person is sick, unemployed, injured, or in need for financial aid, the government
should definitely step in and help. This is known as a safety net; when people know they can
depend on the government to help them in times of desperate need. Safety nets are very
important because people should know that the government is there to provide financial aid.
For example, if someone is unemployed, the government provides a saftey net by sending
monthly payments of unemployment insurance to make sure that a person has enough money
to support themself. The government plays a huge role in providing security for everyone to
make sure that nobody is at a disadvantage. A mixedeconomy like the U.S. provides health
care, education and fair class differences will be the...

...A MixedEconomy: The Role of the Market - Printer Friendly
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A MixedEconomy: The Role of the Market
From U.S. Department of State
A MixedEconomy: The Role of the Market
The United States is said to have a mixedeconomy because privately owned businesses and government both play important
roles. Indeed, some of the most enduring debates of American economic history focus on the relative roles of the public and
private sectors.
The American free enterprise system emphasizes private ownership. Private businesses produce most goods and services,
and almost two-thirds of the nation's total economic output goes to individuals for personal use (the remaining one-third is
bought by government and business). The consumer role is so great, in fact, that the nation is sometimes characterized as
having a "consumer economy."
This emphasis on private ownership arises, in part, from American beliefs about personal freedom. From the time the nation
was created, Americans have feared excessive government power, and they have sought to limit government's authority over
individuals -- including its role in the economic realm. In addition, Americans generally believe that an economy characterized
by private ownership is likely to operate more efficiently than one with substantial...

...problem, which is sometimes called the problem of scarcity, choices have to be made over the following points:
1. What to produce?
A classic question here that we often heard of is “Butter or cannon?” Should an economy produce more consumer goods, e.g. TVs, which can immediately raise people’s living standards, or put more resources into produce more machinery that would enhance the economy’s production capability in the long run? How to strike a balance over the quantities of diffident goods are going to be produced is well worth considering for the decision-makers.
2. How to produce?
Generally, what we expect the market going to do is to obtain maximum use out of resources available. This is obvious, but some other issues besides purely economic concerns also should be considered. For example, even though we could produce more goods by forcing labours to accept longer working-hours; this is not something we should do, since there exists moral objections. So, the decision to maximise output and satisfy more wants would need to consider the full impact on the environment and any potential long-term health risks.
3. For whom to produce
Though, on the surface, almost all the countries agree that the wealth allocating system in an economy should be “fair” for both the poor and the better off; in fact, there are some attempts to create a more egalitarian society through policies that re-distribute wealth and income society...

...increasing number of countries are choosing to have a mixedeconomy
Recent thirty years, the world has a lot of change. Many countries changed their form of government, like German reunification, the disorganization of Soviet Union. With that changing these countries also from command economy turn to mixedeconomy. On the other hand, after 2008 financial crisis and after bama steps up for health care reform, the USA more and more close to mixedeconomy. Mixedeconomy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies. The economists have find the weakness of command economy and free-mark economy, and increasing number of countries realize mixedeconomy is the best way to develop.
What’s the meaning of command economy? Alec Nove(1987) said there is no difference between a command economy and a planned economy. It is an economic system which decided what kind of goods need to produce and produce how many goods in a plan formulated by a government agency.
There are some advantages of economic planning. Like economy stability, have long term plans, developing rapidly and...

...A mixedeconomy means that there is a balance between private and public enterprises. In most countries, not just the Philippines, this sort of economy is preferred as it allows a mix of central control over essential services as well as allowing private companies to flourish; generating wealth and providing employment.
Public services
By providing high quality public services in areas such as electricity, gas, water and public transport such as roads, trains, buses and trams a degree of control can be placed over a country's infrastructure. With central investment over key services it provides an element of stability and allows businesses some assurance to base their future plans around.
Private investment
In order for an economy to fully develop a flourishing private sector is essential. With different companies offering their services, it ensures competition and keeps prices competitive. These sorts of businesses can just as easily be in manufacturing as in the service sector and can provide employment opportunities on a large scale.
By encouraging and providing for private enterprises an economy achieves balance, being reliant on one sector or the other can create problems through over reliance.
Summary
By providing a balanced economy a country stands the best chance of providing future economic growth. Both private and public sectors are by necessity linked.
A...